After extreme controversy and resistance to the original plan to Cap Rentals at the John Hancock (175 E. Delaware) the Hancock board has decided to bring a new proposal to the table.
The Hancock board earlier this month proposed a “soft cap” according to Crain’s Chicago Business which would limit rentals to 160 units, or roughly 23% of the building’s 705 condos. Furthermore, this plan also has exceptions in the rule which would permit leases to family members or another owner during a renovation, for instance. Ballots for this measure were recently passed out to each owner in the Hancock. Two-thirds of the Hancock’s owners must vote in favor of the proposal in order for it to pass and have it be added to the association bylaws.
Currently the Hancock has 20.8% of the condos leased, which is 147 units. While many owners may be upset about a rental cap some renters have questions about whether or not they’ll be able to stay in the building.
More than likely all currently rented units will remain grandfathered in and will allow the unit owners to continue to rent their units. Of course all leases stay in place 100% and are fully enforceable.
The one thing to remember, however, is that the owners do not have to vote on this issue within a certain time frame. The ballots have no deadline to be returned which means it might be a very long while before we have an answer. In the meantime another building is trying to pass a rental cap; The Chandler, 450 E. Waterside.
Paul Blackburn is a licensed Illinois Realtor and Associate Broker with @ Properties. He can be reached anytime via e-mail at Paul@PKBlackburn.com